The New York Times Co. said Tuesday profit in the fourth quarter slumped 47 percent from a year earlier, hit by costs for restructuring and investment in digital operations.
The prestigious newspaper publisher reported a net profit for shareholders of $34.8 million, down from $65 million in the same period in 2013.
Revenue was nearly flat in the period at $444 million.
The Times faced increased costs in the quarter for severance as it reduces its newsroom staff, and from investments in its online operations as readers shift away from print.
Times Co. president and chief executive Mark Thompson said he was nonetheless encouraged by growth in digital subscribers and that the company would keep investing in digital.
Thompson said 2014 "was an encouraging year with sufficient progress in digital advertising and subscription revenues to deliver modest overall revenue growth for the company."
The Times ended the year with 910,000 paid digital subscribers, up 150,000 from the previous year, and hopes to reach one million in 2015.
"We were particularly pleased with the strong growth in digital advertising, boosted by the introduction of paid posts, our native advertising solution, as well as rapid growth in ad sales associated with video and mobile," Thompson said.
"We intend to continue to invest in digital growth but will also bear down on costs to defend our profitability."
He added that the Times "will also soon be appointing new leaders in marketing and digital product/technology."
For the full year, profit fell nearly by half to $33.3 million while revenues edged up 0.7 percent to $1.59 billion.
In October, The Times said it plans to cut 100 newsroom jobs even as it pushes harder to emphasize digital content to offset drops in print subscriptions.